Property Valuation
What is 'capitalization rate' (cap rate) used to measure in South Carolina real estate investment?
AThe interest rate on the mortgage
BThe rate of return on a property based on the income it generates✓ Correct
CThe rate of appreciation in the local market
DThe tax rate applied to property income
Explanation
Cap rate = NOI ÷ Value. It measures the expected rate of return on a real estate investment, allowing investors to compare properties and assess investment performance relative to risk.
Related South Carolina Property Valuation Questions
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